Why do B-Schools deliberately underestimate the Cost of Attendance

Question

We have all heard many times that what an MBA program states is the cost of attendance is usually vastly underestimated (different sources say that it may be 10-30%)

Would like to understand why business schools do this. What do they achieve by underestimating this?

SS1986 · Answer

To be honest, it is impossible to estimate how each student will spend their personal expenses. The only guaranteed costs that the B schools can provide are tuition, school fees, and dorm housing rates if applicable, the rest of the expenses are such a wildcard with food, living, and trips that it'll be tough to provide an accurate estimate.

mgg234 · Answer

I felt like Kellogg's was very accurate. I drink and travel constantly, and I'm still under budget. If you go to school in NYC I can see how this changes though.

brandon432 · Answer

I mostly agree. With nights out and weekend trips, Booth's is pretty close. A few big treks were funded out of savings and internship salary though. But those are completely discretionary, so shouldn't be in the Cost of  Attendance .

billy005 · Answer

INSEAD was pretty accurate too. I tried to save and my overall costs were 30-40% cheaper than what was stated. Even after adding all the travel expenses it was still cheaper than the stated average, in my case.

Why do B-Schools deliberately underestimate the Cost of Attendance

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